In parimutuel betting systems, unlike other win/lose wagering systems, such as fixed-odd betting, a payout on a bet is not determined until a pool is closed, which typically occurs when or shortly before the event on which bets are placed begins. Parimutuel betting systems are designed around shifting odds that continually change until a final bet on the event is placed. Each payout for each individual bet is determined as a share of all the available bet amounts in the pool. A winning wager in a parimutuel system receives a payout from the portion of the pool that is made available to pay winning wagers (as opposed to portions kept by operators (“the house”)), which payout is proportional to the ratio of the amount of money wagered by the individual to the available portions of the overall amount wagered by the winning bets.
In parimutuel betting systems, the role of and risk to the house, which may be, for example, a casino, sportsbook organization, racetrack operator, or the like, is minimized because bettors are placing wagers against other bettors, rather than against the house. Thus, parimutuel systems may eliminate any tangible risk for the house, allowing the house to simply take a cut of the entire betting pool without regard to the outcome of the event, such as an athletic competition, on which the wagers are placed.
In the past, parimutuel betting systems have received bets by presenting the bettor with a list of possible bets, i.e., event outcomes, for selection. Once selected, the parimutuel betting system receives the selected bet, along with the amount of the bet. A parimutuel betting system may, for example, present a bettor with a list of horses participating in a race, and allow the bettor to select a horse to win.
Parimutuel betting systems may accept wagers of a wide variety of types and on a wide variety of events. As described in U.S. patent application Ser. No. 10/640,656 (“the '656 application”), and U.S. patent application Ser. No. 12/905,558 (“the '558 application”), each incorporated herein by reference, parimutuel wagering systems may accept wagers on events such as horse races or football games. Further, within each event upon which a wager is placed, a wide variety of wagers may be made available. As an example, the '656 application describes a number of ways to bet on a horse race, including, but not limited to, betting on a horse to finish in a particular place in the race, or betting on a horse to finish in any place except for a particular place in the race. A bettor can bet on any possible combination of finishes in a horse race, covering all possible results.
Accordingly, there exists a wide variety of possible bets that may be placed on a wide variety of underlying events.